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Juniper: Targeting the Raw Market of IoE

April 07, 2014 | About:

mitu77

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Internet of Everything (IoE) is a new evolution of Internet that is going to change the future with devices getting interconnected over Internet. Companies like Juniper (JNPR) are leaders in providing network will benefit most with such technology stated as IoE. Investors that are partial with technology stocks can always give a closer look to companies like Juniper as it is on track to benefit from IoE. Market analysts and research companies foresee $14.4 trillion as net profit between 2013 and 2022 globally.

Raw Niche Market

It is not a hidden fact that the Internet has changed the definition of doing business and further continues to evolve in changing and improving the world. What sounded like a fiction in the past is now a part of the real world; imagine a world where every device is interconnected.

The connectivity scenario can be inter-connected devices, devices connected to people, people to machine connectivity and people to people that will formulate a connected world. The interconnected architecture enhances the work efficiency and power of decision making, since information will be readily available at the click of a button. With the age of IoE maturing, the demand with be in multiples for various components formulating IoE.

Various entities like high speed processors, high network speed, Internet security equipment and various others with have an alarming demand, creating a raw niche market for manufacturers of these entities. Companies like Juniper will benefit most from this virgin market.

How Juniper Can Benefit from This Market?

Internet security will be a prime concern of any company that deploys business on IoE environment. Juniper, a market leader for providing network security solutions, will always gain from IoE. The company provides integrated solutions that formulate a secured network. Juniper’s network security appliances like the SA Series, which also provides cross platform compatibility, will certainly benefit as we surely witness devices on multiple platforms being connected in an IoE environment.

Software defined networks (SDN) solutions provided by Juniper can again benefit from this market of IoE. The estimated forecast of the SDN is projected to be around 2017 by end of 2017.

Demand for network operating system will also rise with IoE. Juniper’s Network Operating System “JUNOS” with find wide acceptability by companies and business houses deploying IoE. JUNOS provides all vertical and horizontal modularity and also provides application interfaces for third party application that is called as "JUNOS space.” Every year, four major releases of JUNOS are released to cover major supported platform.

From the investor aspect, Juniper stock is not so expensive. At 17 times forward earnings it can always reap benefits. Also, Juniper’s earnings are expected to grow at a CAGR of 14% in the next five years, the fastest of the three.

Competitor

Cisco (CSCO), is a leading manufacturer of network equipment with global footprint. Some products like routers, switches and processors which will have high demand with the IoE market maturing with time. Speed will be an important constraint in an IoE environment as the need of high traffic data transfer will be the key to success of IoE. Cisco with its high end equipment for high speed data transfer switches with high throughput would be the preferred choice by companies opting for IoE.

Cisco being an established name and with global footprint and rich product portfolio should be a preferred choice of corporate houses and governments for various connectivity needs in devices. Some of the products of Cisco such as for optical networking, routers, switches, wireless, networking software, etc., will gain maximum from this market of IoE in future.

Conclusion

So, investors have a wide range of choices to make the most of the Internet of Everything. This market growth is expected to be exponential and is expected to be a multi-trillion dollar market going forward, giving an investor all the more reason to invest in any on these companies.


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